A coalition of 48 state attorneys general, led by Texas AG Ken Paxton, has launched an intensive antitrust investigation into Google’s advertising practices, marking the most comprehensive scrutiny of the tech giant’s ad business to date. The probe will examine Google’s acquisitions of ad tech firms like DoubleClick, its data collection methods, and pricing models, with officials vowing to follow the evidence wherever it leads.
“This investigation focuses on Google’s advertising business, but the facts will lead where the facts lead,” Paxton stated during Monday’s press conference, emphasizing concerns about Google’s market dominance and use of consumer data.
Google’s Commanding Market Position
According to eMarketer data, Google’s ad business represents a staggering 20% of all U.S. ad spending across both digital and traditional media this year. The company controls 74.6% of U.S. search ad spending and is projected to capture 37.2% of the total U.S. digital ad market ($48.05 billion) – nearly double second-place Facebook’s 22.1% share.
Jason Kint, CEO of Digital Content Next, noted regulators are developing sophisticated understanding of Google’s unique position across the digital advertising ecosystem. “They have the ability to see into the data throughout that entire supply chain,” Kint told CNBC, highlighting Google’s unmatched control over both buy-side and sell-side platforms.
Expanding Investigation Scope
Investigators have issued demands for information about Google’s requirement that advertisers use its proprietary services, along with potential customer complaints about these policies. The probe may expand to examine Google’s conduct in specific verticals like job searches and travel bookings, where competitors allege anti-competitive practices.
In Europe, Google faces parallel scrutiny over allegedly suppressing job-search competitors by prioritizing its own widget. Travel platforms like Tripadvisor and Booking.com report declining returns from Google searches as the company promotes its own booking tools. “It is getting a lot harder due to Google pushing their own products,” Tripadvisor CEO Steve Kaufer acknowledged during an earnings call.
Consumer Impact Under Microscope
The investigation will evaluate potential consumer harm from Google’s information prioritization. Yelp’s Luther Lowe cited instances where Google allegedly steers users to inferior first-party products, referencing a Wall Street Journal report about misleading Google Maps listings. “This form of self-serving bias causes direct harm to consumers at an incredible scale,” Lowe wrote.
While the investigation may take years, Lowe predicts transformative outcomes: “I can’t imagine a scenario where Alphabet doesn’t emerge from this as a completely different company whose conduct is heavily scrutinized.”
Google’s Response
Google directed inquiries to a recent blog post by SVP Kent Walker, stating the company “has always worked constructively with regulators” and remains committed to fair competition. “We look forward to showing how we are investing in innovation and providing services that people want,” the statement read.
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